The labor market is in equilibrium whenever

Question

Quizplus · Accepted Answer

The labor market is said to be in equilibrium when the quantity of labor demanded is equal to the quantity of labor supplied. This is because at this point, there is no excess supply or demand for labor, and the market clears. In this situation, employers are willing to hire all the workers who are willing and able to work at the going wage rate, and workers are able to find jobs at that wage rate. Thus, the real wage rate may or may not be increasing or decreasing, but the labor market is considered in equilibrium when quantity demanded equals quantity supplied.

The Labor Market Is in Equilibrium Whenever